hobgoblin wrote:

I see that they have taken over the bottom spot from us having lost 3 games. I also read an interesting article concerning the clubs level of debt, currently £112,000. They have just had a fans forum where concerns were raised about the future of the club and how it was managed with claims that some directors didn't know the level of debt. This debt is said to be the result of their unsuccessful time in the National league. I have previously read a piece by the Dover chairman who says it costs millions to compete at National league level while only hundreds of thousands at ours. Remember also the fates of Salisbury and Truro. Much better to play at a level you can afford rather than the level the fans want. Moral, be careful what you wish for. 

Talking of debt, I read a 2019 article saying Bath City had to repay their debt by 2022, they were hoping the campus idea would solve that … so not sure where they stand.

Correct Bath City have a great attendance record and that is a huge advantage with regard to playing budget Like most clubs debt is an issue but I presume we are debt free and with Neil being prepared to continually back us we can rest easy.  
 

hobgoblin wrote:

What I find it hard to understand is how football clubs in all leagues ( not just in this country) are allowed to get away with running up huge debts yet ordinary people and firms would have creditors and banks  banging on their doors for owing just a few quid.

It would be good to dig into this question more.  Perhaps, in general, it's not that complicated...Hobgoblin.  Football Clubs at our level are just like ordinary firms.  If they are poorly run and accrue debt, then unless they can service that debt by way of gates, sponsorship, donations and merchandise, Bar, raffle revenues etc then creditors especially HMRC who get first dibs, start calling in debts, resulting in sometimes  drastic measures being brought in ( slashed wage bills, redundancies etc)  before the Club finally enters administration and/or worst case scenario, suffers the fate of Bury FC and becomes extinct.  Deficit financing  is a constant high-wire act and any serious headwinds like Covid or the withdrawal of a Sugar Daddy Chairman can bring any Club that overreaches itself crashing down. For so many clubs life is a daily warding off of creditors and re-structuring of debt. As has been mentioned above, a lot of Clubs like us ultimately have to curtail their ambitions because the cost of moving up the pyramid demands dramatically increased expenditure on infrastructure and players. Sustainable progress upwards probably needs to take  years while the groundwork is prepared.  Neils' " Holy Trinity" of what guides Chairman and Board that he outlined at the Commercial Open Forum is the strict 3-way division of revenue across three fronts: Maintenance ( ground and all facilities); players and staff; and continuous Development (e.g new stands, new playing surface).  Be tempted to rob one of those three aspects to support another( eg splash out on players) and you run into immediate trouble forced as you are to neglect the other two. One of the many great strengths of Chippenham Town is the excellent governance and Management of the Club.. courtesy of Neil and the Board, and the seemingly tireless work of a dedicated body of volunteers or semi-volunteers who keep the club's wage bill to an absolute minimum and make it an "Us" club rather than a "They" club.That's why any volunteering for the Club however modest is absolutely vital for its good health and future prospects.... which I suppose is a sort of call to arms.. myself included!!
 

Agree fully. Presumably the "contractual" obligation to fulfil your fixtures during the Pandemic trumped common sense.

These sort of discussions appear every now and then and  other posters say how we are better run than other clubs in financial terms. However Reginald has highlighted that we are solvent due to our "Sugar Daddy"  but surely that means we are also in a risky position.
The nation is facing real economic problems with a potential recession. Maybe our benefactor might  find himself  in a position where he has to reduce or even withdraw his financial backing.

Last edited by Sandell's Sandal (17/8/2022 9:47 PM)